Kaplan and Norton Essay Example | Topics and Well Written Essays - 500 words

Kaplan and Norton - Essay ExampleTheir visiting card requires managers to service the basic question for accounting How do we look at sh atomic number 18holdersThe Kaplan and Norton describe the innovation of the balance scorecard as follows The balanced scorecard retains traditional financial measures. But financial measures tell the story of agone events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future respect through investment in customers, suppliers, employees, processes, technology, and innovation. (Kaplan, Norton, 1996). So, the process of the Balance Scorecard planning helps to come across specific agency and processes required at different levels of the organization. The organizations strategic, tactical, and operational goals and plans must be consistent and mutually supportive.There are four primary cells in the Balance Scorecard financial, customer, process, and people/learning. In each cell, company should identify the key drivers that help translate strategic goals to operational accounting issues. Each of those goals would also have a set of metrics. For example, under customer metrics, a company might look at growth rate.(b) employ the balanced scorecard system allows the food retailer industry